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Snap (SNAP) Outpaces Stock Market Gains: What You Should Know
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Snap (SNAP - Free Report) closed at $10.23 in the latest trading session, marking a +1.39% move from the prior day. This move outpaced the S&P 500's daily gain of 0.93%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.
Coming into today, shares of the company behind Snapchat had gained 18.01% in the past month. In that same time, the Computer and Technology sector gained 10.74%, while the S&P 500 gained 4.61%.
Investors will be hoping for strength from Snap as it approaches its next earnings release. In that report, analysts expect Snap to post earnings of -$0.05 per share. This would mark a year-over-year decline of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, down 5.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.04 per share and revenue of $4.51 billion. These totals would mark changes of -76.47% and -2.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.07% lower within the past month. Snap is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Snap is holding a Forward P/E ratio of 232.85. For comparison, its industry has an average Forward P/E of 41.4, which means Snap is trading at a premium to the group.
Meanwhile, SNAP's PEG ratio is currently 16.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Snap (SNAP) Outpaces Stock Market Gains: What You Should Know
Snap (SNAP - Free Report) closed at $10.23 in the latest trading session, marking a +1.39% move from the prior day. This move outpaced the S&P 500's daily gain of 0.93%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.
Coming into today, shares of the company behind Snapchat had gained 18.01% in the past month. In that same time, the Computer and Technology sector gained 10.74%, while the S&P 500 gained 4.61%.
Investors will be hoping for strength from Snap as it approaches its next earnings release. In that report, analysts expect Snap to post earnings of -$0.05 per share. This would mark a year-over-year decline of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, down 5.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.04 per share and revenue of $4.51 billion. These totals would mark changes of -76.47% and -2.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.07% lower within the past month. Snap is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Snap is holding a Forward P/E ratio of 232.85. For comparison, its industry has an average Forward P/E of 41.4, which means Snap is trading at a premium to the group.
Meanwhile, SNAP's PEG ratio is currently 16.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.